Community Foundations Enable Accountable Local Ownership: An Example from Palestine HLF4 KNOWLEDGE AND INNOVATION SPACE Partners: Dalia Association, Palestine’s community foundation Local civil society Local communities International NGOs International donors Local private sector Diaspora

Community Foundations Enable Accountable Local Ownership: An Example from Palestine Background Dependence on donor-driven aid undermines local civil society. NGOs not accountable to local communities lose credibility. Philanthropy and volunteerism are weakened. Resulting passivity and entitlement contribute to poor development outcomes, unsustainable efforts, and waste of resources. In response, Palestinians took initiative to establish Dalia Association to reduce dependence on external aid by mobilizing resources under local control, promoting accountability, and catalyzing respect for Palestinian rights to self-determination in development. 2/4 HLF4 KNOWLEDGE AND INNOVATION SPACE

Innovation “Women Supporting Women” and “The Village Decides” are two programs using community-controlled grantmaking to give control over development resources to the community, but ensuring democratic decision-making, strategic thinking, and accountability. Villages set up “village funds” and invite locals and diaspora from the village to contribute thus mobilizing sustainable resources, strengthening long-term ties, and increasing local initiative and trust. Companies also set up “company funds” to outsource their corporate philanthropy programs, no matter how small or large. Civil society activists engage with international NGOs and donors to explore problems and find mechanisms to improve realization of rights, use of funds, and developmental impact in the international aid system. Objectives 1-Offer small, community- controlled grants that increase the democracy, transparency, accountability, and professionalism of local initiatives. 2-Link people with resources in ways that increase the flexibility and innovation of local initiatives. 3-Encourage giving by locals, companies, and diaspora Palestinians and create systems that make giving easier, more trustworthy, and more sustainable. 4-Advocate for systemic change in the international aid system so that it respects Palestinian rights and responds to local priorities. 3/4 HLF4 KNOWLEDGE AND INNOVATION SPACE

Results Local civil society is empowered. Initiatives address local priorities and utilize local capacities. Local actors are held accountable by their own communities. International actors are held accountable for following best practices. Local people see themselves as givers and trust local philanthropic systems. Institutions donate because they understand their role in development. The local systems and leaders are strengthened. Rights are enhanced. Applicability Community foundations can grow organically and/or replicate. They are spreading across the developing world and can share best practices in philanthropy development, community accountability, and continuous improvement of international aid outcomes. Partnerships between community foundations and international aid actors can strengthen the value of international contributions to development. 4/4 HLF4 KNOWLEDGE AND INNOVATION SPACE